Babaamaajimowinan (Telling of news in different places)
The nation’s largest banks will need more money to use as a safeguard against a future collapse of the financial system, under a plan to protect the U.S. economy unveiled today by the Minneapolis Fed and its new leader, Neel Kashkari.
The proposal, developed over the past 10 months, also calls for a tax on debt for hedge funds and simpler regulations for community banks.
It would only affect the very largest banks, those with assets exceeding $250 billion — including Minnesota’s banking giants U.S. Bancorp and Wells Fargo & Co. — whose failure or near-failure could weaken the broader economy and force the U.S. government to bail them out at enormous taxpayer expense.
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